Total Quality Management (TQM) Practices and Traditional Management Practices - Assignment Example

Management Systems Management systems include a set of policies and regulations that are designed to run different organizational matters. Implementation of effective management systems is also important in healthcare sector. Management of any hospital needs to be competent in order to run the healthcare processes effectively. The difference between Total quality management (TQM) practices and traditional management practices in relation with management systems is that in TQM, all employees of the organization play their role in improving the efficiency of the organization in order to achieve long-term success through customer satisfaction. Both management and the employees make their efforts to improve the business processes and policies. Whereas if we talk about traditional management practices, we can say that the management staff practicing tradition management is more concerned with business processes and the customer side is often ignored or given less attention. Another negative aspect regarding traditional management practices is that the management is less innovative and does not want to involve employees’ views in decision-making processes. Organizational Structure Organizational structure refers to the way through which management of an organization use employees and departments to drive the organization towards achievement of different goals and objectives. For any organization, such as healthcare organizations, the structure plays an important role in its success because structure clarifies roles and responsibilities of every employee. “Organizational structure provides the guidelines for the system of reporting that drives an organization” (Ann, n.d.). TQM views organizational structure as a one unit whereas traditional management takes it as different units putting their efforts to achieve their respective goals. TQM gives importance to collective efforts to reach organizational goals and objectives whereas traditional managers do not want to take ideas of employees in making any kind of policy and views all departments as different units of the organization. Management’s Role Management’s role is critical for the success of any organization. For example, in a healthcare organization, management assigns tasks to different departments based on the nature of tasks and the departments make their efforts to complete those tasks. The role of management using TQM is quite different to the role of the management practicing traditional management style. “TQM takes into account all quality measures taken at all levels and involving all company employees” (Murray, 2010). Top management provides regular training to the employees in order to make them improve the quality of products. If we talk about traditional management practices, we can say that in traditional management, all business processes and decisions revolve around the top management of the organization that prevents employees from being creative and innovative. Goals and Objectives The goals and objectives of TQM and traditional management have some differences. For example, the primary objective of TQM is to increase customer satisfaction with the company’s products and services. Rawlins (2008) found that total quality management is a way to improve the effectiveness and competitiveness of an organization as a whole (p.19) Traditional management is mainly concerned with the achievement of market dominance using existing and non-innovative approach, which is not possible in today’s world. Today, only those companies achieve success, which incorporate innovation and quality in the products and services. For example, in healthcare organizations, quality of services should be provided to the patients in order to create a permanent place in the healthcare sector. Customers Customer is the main focal pint of TQM. Kanji (1995) found that TQM believes in total customer focus (p. 591). The companies using TQM approach in carrying out different business processes mainly emphasize on customers because the management staffs of such companies think customers as the foundation of organizational success. “It typically requires every person in the organization to be focused on the customer” (Hardt, 2010). In healthcare organizations, doctors are meant to provide high quality services to the patients in order to provide them with satisfaction and relief. “Quality should be aimed at total customer satisfaction with the product or service you are selling” (Jacowski, 2010). TQM increases customer satisfaction by incorporating quality in business processes (Viswanathan, 2008). Traditional management mainly focuses on achieving high profits for the company. Traditional management focuses more on employees as compared to customers. Knowledge The companies using TQM approach believe in the importance of knowledge for organization’s success. TQM makes use of employees’ knowledge to create innovative and high quality products for the customers. For example, in healthcare organizations, knowledge of doctors in their respective fields is critical for the health of patients. In case of traditional management, the management is concerned with using employees’ knowledge in carrying out business activities but do not include their knowledge, skills, and abilities in decision-making processes. Role of People and Responsibility The role of people in TQM is to put every effort in the development of high quality products in order to increase customer satisfaction. Employees and the management staff of a company put mutual efforts for achieving goals and objectives of the company. In healthcare sector, it is the responsibility of the doctors and nurses to provide the patients with extreme care and quality treatment. In case of traditional management, top management desires to be in control, which prevents the employees from being creative and effective. Teamwork Teamwork is the key to success. In healthcare organizations, nurses cooperate with surgeons and doctors during the process of treatment, which is an example of teamwork. TQM promotes teamwork and makes use of team efforts to achieve desired goals and objectives whereas in traditional management practices, the concept of teamwork is somewhat different from the traditional management. The individuals are held responsible for whole group in case of traditional management. Reward Systems Rewards are there to appreciate employees’ performance and to motivate them to keep up the good work. Implementation of reward systems plays an important role in increasing the employees’ performance. In TQM, rewards systems are based on both individual performance and team performance. Rewards are given to individuals if the management likes some ideas given by an employee to the management. Performance-based rewards are given if the team exceeds the expectations of the management. In case of traditional management, there are no teamwork based reward systems. Some companies, which use traditional management approach, implement individual based reward systems. If we talk about healthcare sector, we come to know that both teamwork and individual reward systems are implemented in healthcare organizations. Supplier Relationships Companies using TQM approach for carrying out business activities, establish effective relationships with the suppliers. Such companies give priority to the quality of products over anything else and want their suppliers to provide them with quality raw material. For example, in healthcare sector, suppliers need to provide quality equipment to the hospitals whereas in case of traditional management, quantity of raw material is generally given importance over quality. Motivation Motivation of employees and the management staff of any healthcare organization is the key towards success of the organization. Companies incorporating TQM practices in their business processes constantly motivate their employees to come up with new ideas and techniques to develop new products that should be able to attract customers. TQM gives much importance to innovation whereas in traditional management practices, the middle managers prevent innovation because they have no free time for the inclusion of new ideas to the management practices. Competition TQM considers competition in the healthcare sector as the source of increasing enthusiasm and motivation level of the employees. It is because when the employees are aware of the company’s competitive approach toward gaining market dominance, they put their efforts to help their company reach its destination. In case of traditional management, the companies often lack new ideas towards business, which make them leave behind in today’s world of competition. References Ann, C. (n.d.). What is Organization Structure?. Retrieved from http://www.ehow.com/facts_5030896_organization-structure.html Hardt, P. (2010). What is Total Quality Management?. Retrieved from http://www.wisegeek.com/what-is-total-quality-management.htm Jacowski, T. (2010). Advantages of Total Quality Management. Retrieved from http://ezinearticles.com/?Advantages-of-Total-Quality-Management&id=4763227 Kanji, G. (1995). Total Quality Management: Proceedings of the First World Congress. London: Chapman & Hall. Murray, M. (2010). Total Quality Management (TQM). Retrieved from http://logistics.about.com/od/qualityinthesupplychain/a/TQM.htm Rawlins, R. (2008). Total Quality Management (TQM). Indiana: AuthorHouse. Viswanathan, G. (2008). Total Quality Management. Retrieved from http://ezinearticles.com/?Total-Quality-Management&id=1092615 Read More